Informist, Monday, Dec 4, 2023
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh fell today due to selling pressure on mills and subdued demand. Prices in Maharashtra were flat due to lack of fresh triggers, said traders.
Mills in Uttar Pradesh reduced prices by 10–20 rupees per 100 kg due to less buying and pressure of offloading the 2.4 mln tn sugar sales quota allotted for December, said Naresh Gupta, a local trader from north India.
The downward trend in prices is likely to continue as new sugarcane crops have been arriving at mills, weighing on the sentiment.
In December, bulk demand for the sweetener from ice-cream and soft drink manufacturers is usually low. However, there is more household demand, constituting about 30% of the total consumption of sugar in the country, compared with the bulk demand, Gupta said.
In Maharashtra, sugar prices were steady today due to balanced demand and supply, said Mukesh Kuvadia, the secretary of the Bombay Sugar Merchants Association.
Prices are likely to fall in the coming days as the sales quota for December is heavy and demand is comparatively less.
The following are the highlights of the sugar trade in the domestic market today:
-Flat at 3,730-3,775 rupees per 100 kg in Kolhapur
-Flat at 3,866-3,966 rupees per 100 kg in Mumbai
-Down by 10 to 20 rupees per 100 kg at 3,800-3,910 rupees per 100 kg in Muzaffarnagar
-Down by 10 to 20 rupees per 100 kg at 3,820-3,925 rupees per 100 kg in Kanpur
On the Intercontinental Exchange, the March sugar contract was at 25.04 cents a pound, down 0.2% from the previous close.
Sugar prices fell today as the dollar appreciated against a basket of major currencies. A stronger dollar makes commodities priced in the greenback more expensive for overseas buyers. Also, crude oil prices fell today, which dragged down sugar prices.
As crude prices fall, mills divert less sugarcane towards the production of ethanol, increasing the supply of the sweetener. End
US$1 = 83.36 rupees
Edited by Akul Nishant Akhoury
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